Groww Mutual Fund launches India’s first power-focused ETF and FoF

Groww Mutual Fund has launched two new passive schemes: the Groww BSE Power ETF and the Groww BSE Power ETF Fund of Fund (FoF). Both aim to track the BSE Power Index – Total Return Index (TRI).

The New Fund Offer (NFO) for both schemes will open on July 18 and close on August 1.

The Groww BSE Power ETF is an exchange-traded fund that invests directly in the BSE Power Index’s underlying companies. The Groww BSE Power ETF FoF invests in the ETF, providing an option for investors who prefer a mutual fund format.

The BSE Power Index includes 14 companies covering power generation, transmission, integrated utilities, and power equipment. The index reflects India’s electricity sector, which has expanded rapidly due to economic growth, policy reforms, and the shift toward renewables.

According to Groww Mutual Fund, India’s electricity consumption has grown nearly five times since 2000. Per capita consumption remains low compared to global averages, indicating scope for growth. The sector has moved from power deficits to surplus, with peak shortages down from 4.2% in FY14 to 0.1% in FY25.

The government’s push for renewable energy, new transmission infrastructure, and schemes like the National Electricity Plan are expected to sustain growth. Demand from electric vehicles and data centres is also rising.

Groww Mutual Fund said the schemes aim to capture this long-term opportunity through index-based investing with low costs and efficient rebalancing. The minimum investment is ₹500 with no exit load. The schemes will use Groww’s 10SPEARTech technology to keep tracking error low.

The fund managers are Nikhil Satam, Aakash Chauhan, and Shashi Kumar.